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          FEMA

          In case of premature withdrawal of deposit, is it necessary for the bank to approach RBI for cancellation of the swap?

          Swap Window for attracting FCNR (B) Dollar funds - As on Sep 18, 2013

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          Swap cancellation requirement: banks must seek RBI approval when FCNR(B) deposits are prematurely withdrawn. Banks must approach the Reserve Bank of India for cancellation of an FCNR(B) deposit swap if the underlying deposit is prematurely withdrawn; RBI may allow cancellation once a threshold of premature withdrawals, to be decided and communicated by RBI when approached, is reached.
                            Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                              Provisions expressly mentioned in the judgment/order text.

                                  Swap cancellation requirement: banks must seek RBI approval when FCNR(B) deposits are prematurely withdrawn.

                                  Banks must approach the Reserve Bank of India for cancellation of an FCNR(B) deposit swap if the underlying deposit is prematurely withdrawn; RBI may allow cancellation once a threshold of premature withdrawals, to be decided and communicated by RBI when approached, is reached.


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